U.S. Rep. Tom Cole (R-OK) on Feb. 21 introduced bipartisan legislation that would give the president new tools to quickly provide economic support to America’s partners and allies facing economic coercion from the People’s Republic of China (PRC).
The Countering Economic Coercion Act of 2023, H.R. 1135, also would hold the PRC accountable for its actions, according to a bill summary provided by Rep. Cole, an original cosponsor of H.R. 1135, along with bill sponsor U.S. Rep. Gregory Meeks (D-NY) and fellow original cosponsor U.S. Rep. Ami Bera (D-CA).
“The People’s Republic of China has repeatedly used economic coercion against United States allies and partners to shape their policies or exact retribution in response to sovereign decisions Beijing does not like,” the three lawmakers said in a joint statement released on Feb. 23.
“Such practice has not only undermined the sovereignty and damaged the economies of our allies and friends, but also directly harmed U.S. interests around the world,” they said. “Beijing’s behavior runs counter to the rules-based system that has been the cornerstone of economic prosperity since the last world war and must be addressed.”
If enacted, H.R. 1135 would provide the president with new authorities to quickly respond to such “malicious activities,” said Rep. Cole and his colleagues.
Specifically, if the president determines that a foreign trading partner of the U.S. is being subjected to economic coercion by a foreign adversary of the U.S., the bill would authorize the president to seek congressional appropriations to support foreign aid, export financing, and sovereign loan guarantees to support U.S. foreign partners, according to a summary of the bill, and to expedite export licensing decisions and regulatory processes to facilitate trade with affected foreign partners.
Additionally, the president would have the authority to decrease duties on non-import-sensitive goods imported by the U.S. from foreign partners that are subject to coercion to make up for lost exports; increase duties on imports from foreign adversaries committing economic coercion against U.S. partners and allies; and waive certain policy requirements to facilitate export financing, allowing the U.S. private sector to meet opportunities in foreign economies suffering from coercion, the summary says.
“We thank Sens. Coons and Young for their leadership in introducing this legislation in the Senate and look forward to working in bipartisan fashion to pass it through both chambers of Congress,” said the lawmakers in reference to S. 295, which was introduced on Feb. 7 by U.S. Senators Todd Young (R-IN) and Chris Coons (D-DE).